InvestorQ : What are the features of the new LIC new jeevan Shanti deferred annuity plan?
Pratik vyas made post

What are the features of the new LIC new jeevan Shanti deferred annuity plan?

Answer
image
Suresh Patil answered.
2 months ago
Follow
LIC New Jeevan Shanti is a variant of a deferred annuity plan. It is a single premium plan i.e. you must pay the premium just once. You can defer annuity for up to 12 years. The return on your investment is guaranteed and you are also guaranteed the annuity rate at the end of the deferral period. Therefore, there is no uncertainty involved. You know upfront how you will get every year after the end of the deferral period.

Some of the features of this plan are-
  • Life-Long Income by way of pension.
  • A choice of Immediate or Deferred Annuity to cater to the needs of every customer.
  • Easy to Purchase: Online as well as offline
  • Multiple Annuity Options are available to the customers to choose from.
  • Guaranteed Additions in Deferred Annuity
  • Divyangjan Plan where the plan can be purchased for the benefit of a handicapped dependent
  • Joint Life Annuity Plan with spouse, grandparent, sibling, or parent.
Tax Benefits:
The premium paid towards purchasing an annuity is tax-free U/S 80CCC till INR 1.5 lakhs per annum.

Annuity:
For Deferred Annuity, 1/3rd of the entire annuity corpus can be withdrawn tax-free U/S 10(10)A, and the remaining 2/3rd has to be converted to annuity according to the option chosen. An annuity is taxable in the hands of the annuitant.

  1. Minimum Entry Age: 30 years, Maximum Entry Age: 79 years
  2. Minimum Vesting Age: 31 years, Maximum Vesting Age: 80 years
  3. Minimum Purchase Price: Rs. 1.5 lakhs subject to minimum annuity restrictions as specified below. The lower minimum purchase price for differently-abled.
  4. Pension Payment Frequency: Monthly, Quarterly, Half-yearly, or Annual pension.
  5. The plan can be purchased both online and offline modes. You get a 2% rebate on buying the policy online.
  6. The pension (annuity) will start after the end of the deferment period. Since the pension is paid in arrears, you will get your first pension payment 13 years after your purchase (yearly payments). If you opted for a monthly pension, you would get the first pension payment after 12 years and 1 month.
  7. On the death of the last survivor, during or after the deferment period, the death benefit will be payable to the nominee.
2 Views